AIM:JSG

Stock Analysis Report

Executive Summary

Johnson Service Group PLC, together with its subsidiaries, provides textile rental and related services in the United Kingdom.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Johnson Service Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.1%

AIM:JSG

0.2%

GB Commercial Services

0.3%

GB Market


1 Year Return

7.1%

AIM:JSG

-4.1%

GB Commercial Services

-3.8%

GB Market

JSG outperformed the Commercial Services industry which returned -4.1% over the past year.

JSG outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3.8% over the past year.


Share holder returns

JSGIndustryMarket
7 Day-7.1%0.2%0.3%
30 Day-1.7%1.3%1.2%
90 Day11.0%13.5%2.8%
1 Year9.6%7.1%-1.5%-4.1%0.6%-3.8%
3 Year81.9%70.6%31.2%19.9%34.9%18.5%
5 Year196.3%164.9%13.7%-4.2%31.4%4.5%

Price Volatility Vs. Market

How volatile is Johnson Service Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Johnson Service Group undervalued based on future cash flows and its price relative to the stock market?

20.65x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Johnson Service Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Johnson Service Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Johnson Service Group is good value based on earnings compared to the GB Commercial Services industry average.

Johnson Service Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Johnson Service Group is poor value based on expected growth next year.


Price Based on Value of Assets

Johnson Service Group is overvalued based on assets compared to the GB Commercial Services industry average.


Next Steps

Future Growth

How is Johnson Service Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Johnson Service Group's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).

Johnson Service Group's earnings are expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).

Johnson Service Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Johnson Service Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Johnson Service Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Johnson Service Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Johnson Service Group performed over the past 5 years?

25.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Johnson Service Group has delivered over 20% year on year earnings growth in the past 5 years.

Johnson Service Group's 1-year earnings growth is less than its 5-year average (5.5% vs 25.8%)

Johnson Service Group's earnings growth has not exceeded the GB Commercial Services industry average in the past year (5.5% vs 22.5%).


Return on Equity

Johnson Service Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Johnson Service Group used its assets more efficiently than the GB Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Johnson Service Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Johnson Service Group's financial position?


Financial Position Analysis

Johnson Service Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Johnson Service Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Johnson Service Group's level of debt (55.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (40% vs 55.5% today).

Debt is well covered by operating cash flow (78.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

What is Johnson Service Group's current dividend yield, its reliability and sustainability?

2.22%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Johnson Service Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.96%).

Johnson Service Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.4%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


Next Steps

Management

What is the CEO of Johnson Service Group's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Peter Egan (46yo)

0.4yrs

Tenure

UK£354,945

Compensation

Mr. Peter John Egan, MBA, Chief Executive Officer of Johnson Service Group PLC since January 1, 2019, Director since April 1, 2018 and served as Chief Operating Officer since April 1, 2018 January 1, 2019. ...


CEO Compensation Analysis

Peter's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Insufficient data for Peter to compare compensation growth.


Management Age and Tenure

5.4yrs

Average Tenure

46yo

Average Age

The average tenure for the Johnson Service Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

2.3yrs

Average Tenure

60yo

Average Age

The average tenure for the Johnson Service Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

BuyUK£11,42019 Dec 18
Christopher Sander
EntityIndividual
Shares10,000
Max PriceUK£1.14
BuyUK£9,98918 Dec 18
Christopher Girling
EntityIndividual
Role
Lead Director
Shares8,638
Max PriceUK£1.16

Ownership Breakdown


Management Team

  • Yvonne Monaghan (60yo)

    CFO & Director

    • Tenure: 11.8yrs
    • Compensation: £553.00k
  • Tim Morris (41yo)

    Group Financial Controller & Company Secretary

    • Tenure: 5.4yrs
  • Peter Egan (46yo)

    CEO & Director

    • Tenure: 0.4yrs
    • Compensation: £354.95k

Board Members

  • Bill Shannon (69yo)

    Non-Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: £83.00k
  • Yvonne Monaghan (60yo)

    CFO & Director

    • Tenure: 11.8yrs
    • Compensation: £553.00k
  • Chris Girling (64yo)

    Senior Independent Non-Executive Director

    • Compensation: £19.00k
  • Nick Gregg (55yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: £44.00k
  • Peter Egan (46yo)

    CEO & Director

    • Tenure: 1.2yrs
    • Compensation: £354.95k

Company Information

Johnson Service Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Johnson Service Group PLC
  • Ticker: JSG
  • Exchange: AIM
  • Founded: 1780
  • Industry: diversified support services
  • Sector: commercial services
  • Market Cap: UK£556.225m
  • Shares outstanding: 368.36m
  • Website: Click here

Number of Employees


Location

  • Johnson Service Group PLC
  • Johnson House
  • Abbots Park
  • Preston Brook
  • Cheshire
  • WA7 3GH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JSGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 1994

Biography

Johnson Service Group PLC, together with its subsidiaries, provides textile rental and related services in the United Kingdom. The company supplies workwear garments and protective wear under the Apparelma ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/24 20:42
End of Day Share Price2019/06/24 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.